NEW ALBANY, Ind. (WDRB) -- For months, Main Street in downtown New Albany has been torn up for construction, and small businesses along the street continue to struggle as a new loan program is being offered, aimed at helping them pull through.
But the long-term, no-interest loan meant to provide some relief amid the ongoing construction may not be enough to keep some from closing down as they continue to lose revenue.
Several business owners have complained that the multimillion-dollar Main Street Revitalization Project is causing them significant losses, with the orange barrels and detour signs blocking customers from getting to their shops.
Despite sign after sign assuring customers that the businesses are open and there's space to park, business owners say they continue to suffer a drastic drop in customers during the project.
"Sadly, you know, it could be some people go out of business," said Ryan Rowe, who owns Disc Crazy on Main Street. "I hope that doesn't happen to us and I hope it doesn't happen to any of these businesses down here. But I think it's a real likely possibility."
Disc Crazy on Main Street in downtown New Albany, Indiana, on Tuesday, Jan. 31, 2023. (Dakota Sherek/WDRB photo)
One Southern Indiana teamed up with the City of New Albany and Floyd County to create the New Albany Central Business District Loan Program. Businesses in the district can request a no-interest loan up to $25,000 with a three-year payback term. The money can be used to help cover overhead and operation costs like payroll, rent and utilities.
"This is not a moneymaker for anybody on this side of the equation," said Mike Fulkerson, small business navigator at One Sothern Indiana. "We're just trying to get the funds out there into the community in a structure that will not burden them excessively."
The first day applications could be submitted, there were 12 applicants, according to One Southern Indiana.
Some shops are still considering it.
"I think it's a step in the right direction," said Dan Hardesty, owner of Eureka Menswear. "It's obviously not what everyone wanted, but it's at least something that we can at least fall back on."
Others are skeptical of the program.
"Suggesting that small businesses take on more debt to deal with lost revenue, to me, is... not feasible," said Rowe.
One Southern Indiana said it designed the loan program with that concern in mind, ensuring first payments wouldn't be due until January 2024 — after the revitalization project is expected to be finished.
"We want to make sure their needs are addressed and we're there to help them," said Fulkerson.
Plenty of shops, whether they plan to apply for the loan or not, hope the city is considering additional funds or support that could help them survive through the year, saying a loan doesn't replace the loss in revenue.
"One S.I. has done great things for Indiana businesses and we do appreciate the gesture on their part," said Kimberly Rowe, another owner of Disc Crazy. "We would really like to see the city do something in response to the what's been created down here. This is a mile-and-a-half of road that has been destroyed so far for over a year."
Eligible businesses must operate out of a "brick and mortar" location as an in-person retail store, restaurant or bar, or personal services establishment. They must be able to show a current lease agreement, building loan agreement or building ownership, have 50 or fewer full-time employees, have been in business for at least two years and have no federal or state liens nor any outstanding judgments.
One Southern Indiana did a similar program for New Albany businesses in 2020 amid the pandemic. President and CEO Wendy Dant Chesser said in a news release announcing the new program that the goal is to help businesses deal with the downtown improvements as well as the Sherman Minton Bridge Renewal Project.
"This 'double whammy' has dramatically curtailed customer traffic to many downtown businesses, affecting both their short-term revenue and long-term viability," Chesser said. "Our hope is that the availability of these no-interest loans will sustain them until customer traffic can return to normal levels."
Loan applications will be accepted through Feb. 10. To request information and complete eligibility requirements, email Fulkerson at MikeF@1si.org.
Fulkerson adds that, while Floyd County is responsible for the initial funding being offered, One Southern Indiana is in talks with other public and private entities to try to add additional funds to the loan pool.
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